Efficient Monopolies: The Limits of Competition in the European Property Insurance Market

Thomas von Ungern-Sternberg

Abstract

Compares the market for property insurance in five European countries, Britain, Spain, France, Switzerland, and Germany. The comparisons are of particular interest, as the regulatory frameworks vary widely from country to country and so do the market outcomes, both in terms of premium level and in terms of available insurance cover. In particular, the state insurance monopolies in Spain and parts of Switzerland permit property owners to obtain global cover against a wide range of natural damages (including floods) at a very low premium rate. The premiums of private insurance companies are much ... More

Compares the market for property insurance in five European countries, Britain, Spain, France, Switzerland, and Germany. The comparisons are of particular interest, as the regulatory frameworks vary widely from country to country and so do the market outcomes, both in terms of premium level and in terms of available insurance cover. In particular, the state insurance monopolies in Spain and parts of Switzerland permit property owners to obtain global cover against a wide range of natural damages (including floods) at a very low premium rate. The premiums of private insurance companies are much higher because they typically spend more than one third of premium income on commissions and administrative costs. State monopolies are considerably more efficient in this respect.

Front Matter

End Matter

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in OSO for personal use (for details see http://www.oxfordscholarship.com/page/privacy-policy).date: 24 May 2018